WTI moved lower on Monday, after hitting resistance at 111.75. However, the slide was short-lived, and in the afternoon, the black liquid rebounded somewhat. Overall, WTI remains well above the upside support line drawn from the low of April 11th, and thus, we would consider the short-term outlook to still be positive.
A clear and decisive break above 111.75 would confirm a forthcoming higher high and may pave the way towards the high of March 25th, the break of which could aim for the day before, at around 118.40. If the bulls are not willing to stop there either, then we may see them climbing towards the 127.35 territory, marked by the high of March 9th.
Shifting attention to our short-term oscillators, we see that the RSI, although it retreated after hitting its 70 barrier, it turned up again, while the MACD lies slightly above both its zero and trigger lines. Both indicators detect upside speed and support the notion for further declines in oil prices.
The short-term outlook could darken again upon a dip below 98.25, a support marked by the low of May 11th. Such a move could confirm the break below the upside line drawn from the low of April 11th, and may initially pave the way towards the low of that same day, at around 93.45. If the bears are not willing to stop there, then we could see them pushing towards the 88.65 zone, marked by the low of February 8th, or the 86.45 territory, defined as a support by the low of January 27th.
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